Addison SD 4 places tentative FY27 budget on public display amid fund-balance questions

The Addison School District 4 Board of Education voted July 15 to place its tentative fiscal year 2027 budget on public display and authorize the business office to begin public-notification steps ahead of a September public hearing.

Doctor Morghazy (S4), who presented the tentative budget, said tentative revenue for FY27 is $62,100,000 and tentative expenditures are $61,500,000, leaving a positive operating balance in the district’s operating funds. Morghazy noted shifts between funds—moving previously used EVF funding back into the education fund to cover rising salaries and benefits—and said capital-project spending is expected to be covered in part by bonds the district hopes to sell in August. “So our tentative revenue is gonna be $62,100,000, and our tentative expenditures are gonna be 61.5,” Morghazy said during the presentation.

Board members pressed on fiscal trends and specific cost drivers. Morghazy told trustees that health-care premiums rose about 16% for FY27 and dental premiums 4%, while workers’ compensation insurance had risen roughly 50% since last fiscal year due to several major claims. He said salary and benefits represent roughly 67% of total budgeted expenditures and purchase services about 21%.

Committee member (S8) asked the board to review the district’s licensing agreements, saying there was “well over $300,000” in current agreements and an additional roughly $200,000 likely to be incurred during the year; the member urged an internal review to avoid duplicative purchases across schools. S8 also warned the district’s fund balance is trending down and said, “the board needs to start looking seriously at major cuts during this next fiscal year.” Morghazy responded that current estimates would put the district at about 43.3% of fund balance next year versus the district policy target of 40% and said the district will monitor collections and expenditures closely.

The board approved the tentative budget placement by roll call. The action authorizes public posting and a 30-day display followed by a public hearing and final adoption in September.

Votes at a glance: the board also approved routine business during the meeting, including minutes of the June 17, 2026 meeting; July 2026 accounts payable; June 2026 payroll; a personnel report listing licensed-staff resignations and hires and ESP staffing changes; and the district’s annual hazardous-crossings list required by the State of Illinois. Each motion was moved, seconded and carried by roll call.

The board will return Aug. 19 at 6 p.m. and continue work toward its final FY27 budget, including publication of the tentative budget on Aug. 4 and a public hearing in September.